WASHINGTON, DC—Shayna Olesiuk, Director of Banking Policy, provided the following comments regarding the Better Markets comment letter submitted to the Federal Deposit Insurance Corporation (FDIC) in response to a Request for Information (RFI) for information on Better Markets characteristics. issued a statement. Data collection related to bank deposits.
“The local bank failure in March 2023 provided clear evidence of the risks associated with uninsured deposits. This is just one reason why improving and strengthening bank deposit reporting is important. , most banks’ publicly available financial data include only estimates of the insured and uninsured proportions of total deposits.As a result, financial risks, especially the risky and volatile uninsured This results in limited and incomplete information about the risks posed by deposits.
“The new expanded reporting requirements will provide valuable transparency for regulators, investors and the public to understand risks in the banking system. We will also provide off-site risk and liquidity monitoring, Deposit insurance pricing and resolution processes for failed banks would also be improved. Expansion of deposit insurance for deposit accounts that directly support functions such as small business transactions and payroll would also be beneficial.
“The cost of expanding this report is justified by the many benefits that improved reporting brings. Additionally, we are also using insured deposits to understand risk profiles, especially in the wake of the spring 2023 bank failures. Banks that do not calculate the proportion of uninsured deposits are not operating in a safe and sound manner.”
You can view the comment letter here.
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Better Markets is a nonprofit, nonpartisan, independent organization founded in the wake of the 2008 financial crisis to advance the public interest in financial markets, support financial reform on Wall Street, and improve the financial system for all. of Americans. Also. Better Markets is a pro-market, pro-business organization that works with allies, including many in the financial industry, to help build a stronger, more secure financial system that protects and promotes Americans’ jobs, savings, retirement and more. , is promoting pro-growth policies. For more information, please visit www.bettermarkets.org.
